Links Help Biotech Firm

Dyadic International in Jupiter on Friday became the first successful financing venture related to The Scripps Research Institute's decision to come to Palm Beach County.

The Jupiter biotech business, which counts Scripps' leader Dr. Richard Lerner as an adviser, has raised $25.3 million and simultaneously taken the company public.

"Can you finance and grow a company in South Florida? Dyadic has allayed that concern," said Mark Emalfarb, chief executive of Dyadic. "The more success stories we have, the better off we all will be."

Dyadic's financing round and listing its shares on Nasdaq follows $6.7 million private financing secured in August. Dyadic is traded under the symbol DYAD. The stock was initially offered at $3.33; on Friday, the stock closed at $6.25.

"We anticipate more success stories like Dyadic. It's an exciting time to be in the state," said Erin Heston, spokeswoman for Enterprise Florida, the public-private partnership that spearheaded Scripps' move to Florida. Scripps, based in La Jolla, Calif., expects to begin building its campus in northwest Palm Beach County later this year. The institute is designed to be a catalyst to bring additional biotech and related businesses and jobs to the state.

The 25-year-old company, which creates industrial and pharmaceutical products, has been struggling for some time to expand. Emalfarb was considering moving the company to another state when Scripps announced its Palm Beach County plans.

Venture capital firms began taking note when Lerner signed on as chief of Dyadic's scientific advisory board. "Lerner can open up doors across the world by waving a wand," Emalfarb said.

Dyadic began as a distributor and then a maker of enzymes that soften fabric and give jeans that "stone-washed" look. The company's industrial work produced a steady stream of revenue that has enabled it to fund gene discovery.

The company already is working on products for multi-billion dollar markets including agriculture, animal health and feed, chemical processing, industrial, textile and pharmaceutical industries. Emalfarb also hopes to develop less expensive drugs for incurable diseases.

"Mark is one of those people you come across in life who's a winner. Going back to his state championship wrestling days, he's one of those guys who's just tenacious," said Barry Kitt, partner in Pinnacle Fund LP, one of four funds leading the financing round.

Kitt said taking Dyadic public was the best choice for the biotech firm. "It's easier access to capital. Mark can start focusing on this business and not raising money."

Mercantile Capital Group, Knott Partners and Crestview Capital Funds also participated in the round. Dyadic went public through a stock-for-stock merger with CCP Worldwide, which already was publicly traded.

Dyadic plans to hire additional researchers, sales people, technical support and, now that it's a public company, a chief financial officer, Emalfarb said.

The company had previously announced plans for a new building at the Abacoa development in Jupiter, which will include incubator and laboratory space for use by other biotech companies interested in locating near Scripps Florida.

"We hope to grow up and expand and have hundreds if not thousands working for us here in South Florida," Emalfarb said.

Marcia Heroux Pounds can be reached at mpounds@sun-sentinel.com or 561-243-6650.